Under what circumstances related to a transfer, as described in Section 16.C(2)(h), are 7 Brew franchisees obligated to make changes?

According to 7 Brew's 2025 Franchise Disclosure Document, a franchisee is obligated to repair and/or replace operating assets and upgrade the store (including its physical structure) in accordance with 7 Brew's then-current requirements and specifications for new 7 Brew stores. This obligation is triggered if the franchisee seeks to transfer their franchise rights or a controlling ownership interest in the franchise.

This requirement is a condition that must be met before the proposed effective date of the transfer. The timeframe for completing these repairs, replacements, and upgrades will be specified by 7 Brew following the transfer's effective date. This ensures that the store aligns with the brand's current standards, maintaining consistency across all 7 Brew locations.

For a prospective franchisee, this means that if they plan to sell their franchise in the future, they may need to invest in upgrades to meet 7 Brew's current standards. This could involve significant costs, depending on how much the brand standards have evolved since the original store setup. It's important to factor in potential upgrade costs when considering the financial implications of a franchise transfer.